New Challenges in Harmonizing the European Packaging Market: The Centrality of the Agri-food Sector

by Alessia Depietri

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With an economic turnover exceeding €370 billion at the European level, the packaging sector can be considered a strategic area of action for the circular industrial transformation process pursued by the European Green Deal. For instance, in Italy, 75.2% of plastic packaging is used for food and beverages, highlighting the close connection between circular packaging and the broader theme of food sustainability, involving aspects such as food safety, food security, and food loss prevention.

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Food packaging plays a critical role as a barrier, slowing down food degradation and preserving its physical integrity. The importance of harmonizing these regulatory aspects across the EU is demonstrated by the link between plastic food packaging and food safety, as outlined in the EU regulation on recycled plastics in contact with food (Regulation 2022/1616/EU). This is further reinforced by Regulation 2023/1442/EU, which updates the list of authorized substances for the production of Materials and Articles in Contact with Food (MOCA) and modifies the authorization framework to ensure a high level of safety for consumers and workers involved in food packaging production.

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From a general perspective, one of the most pressing needs for the packaging market, especially in the agri-food sector, is the comprehensive harmonization of relevant European regulations to smooth out the discrepancies in packaging management across different EU member states. In this regard, the Packaging and Packaging Waste Regulation (PPWR) is expected to address these issues, awaiting final approval by the Council for its publication and enforcement.

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The choice of a self-executing legal instrument is justified by the gaps—and subsequent application issues—left by previous directives in different member states, in line with the principles of subsidiarity and proportionality typical of environmental matters.

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In continuity with previous legislation, the European Commission built this proposal based on Article 114 of the TFEU, concerning the harmonization of the internal market, rather than Article 192 on environmental protection. However, the unique aspect of the chosen legal basis lies in a renewed vision of the European internal market, which, by pursuing circularity goals, seems to have absorbed environmental variables as drivers—rather than obstacles—of increased economic competitiveness, promoting an "eco-modulated" approach to packaging.

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The PPWR regulation outlines several key operational objectives, summarized below:

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1. Packaging Reduction: A reduction of 5% in overall packaging volume by 2030, 10% by 2035, and 15% by 2040, mainly by eliminating unnecessary packaging, defining a maximum void space of 50% for multiple packaging, and promoting eco-design.
2. Ban on Single-use Plastics: The prohibition of single-use plastics where they are not replaceable by 2030, along with a ban on ultra-lightweight plastic bags and the promotion of bioplastics, with a focus on biodegradable and compostable materials.
3. Promotion of Reusability, Recyclability, and Recycling: This includes setting minimum recycled content for plastic packaging, establishing minimum weight targets for recycled packaging, and defining separate collection and reuse obligations for certain packaging types, such as for alcoholic and non-alcoholic beverages, multi-use packaging, and transport packaging.

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Article 2 of the proposal introduces a new definition of packaging as "any material intended to be used for containing and protecting products and enabling their handling, delivery, or presentation," which can be differentiated based on function, material composition, and design. Compared to the previous definition, this new one introduces two key concepts: function and design, reflecting the product’s life cycle.

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The regulation proposal, through Article 1, emphasizes two core elements of the circular economy: environmental labeling and extended producer responsibility. Article 6 specifies that financial contributions from producers to meet their extended producer responsibility obligations will be modulated based on recycling performance, with large-scale recycling thresholds to be applied starting in 2035.

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Despite these goals, the regulation has been met with reservations from several industry stakeholders. One major criticism is the strong emphasis on recycling and reuse without sufficiently addressing the need for substantial investments in infrastructure. It also assumes that refilling and reuse are always preferable to single-use alternatives. Additionally, the regulation may not be enough to achieve 100% reusable or recyclable packaging by 2030, as the wide system of exemptions for innovative packaging allows compliance with recyclability requirements only five years after the first market introduction.

A broader question arises: Are EU Member States ready to adapt to these regulations in practice? Do they have the necessary technical means? According to the 2022 Eurostat report, which considers factors such as the circular material use rate and structural funds invested in circularity by individual countries, there is a stark disparity. While the Netherlands (27.5%), Belgium (22.2%), and France (19.3%) perform well, countries like Finland (0.6%), Romania (1.4%), and Ireland (1.8%) lag behind. These disparities suggest that some EU Member States may struggle to adapt to a regulation that is undoubtedly necessary but restrictive for the packaging sector. Thus, the regulation’s success will likely depend on the implementation of public policies capable of addressing the negative externalities associated with rising production costs and employment challenges, particularly in countries where the circular transition still faces significant weaknesses.